Job Cuts Implemented Across WPP Media Agencies Following Reports of Potential GroupM Rebranding
Unexpected Layoffs at WPP Media Agencies: A Bitter Pill to Swallow
Days after WPP allegedly rebranded GroupM as WPP Media, a series of layoffs have hit multiple employees at the media buying unit, as confirmed by numerous sources speaking to ADWEEK.
ADWEEK couldn't confirm the extent of the job cuts. A spokesperson for the company declined to comment.
While workers had anticipated leadership consolidation and operational restructuring, the sudden layoffs, without prior warning, came as a shock.
According to GroupM CEO Brian Lesser's internal memo this week, layoffs were imminent. Ad Age reported on this matter. It appears these cutbacks affected various WPP media agencies.
One employee who lost their job recalls a meeting on May 7 at 3 World Trade Center labeled "Connect." Entering the room filled with glass walls and recognizing an HR executive, they were abruptly informed that their position no longer aligned with the company's strategic needs or business goals. Despite wanting to bid a final farewell to their team, they were ordered to leave immediately.
Anxiety and silence permeated the workplace, with some staff members being "disappeared" while others were expected to carry on pretending nothing had happened, said another employee affected by the changes. Both former employees, hailing from different WPP agencies, discovered others had been let go only through bounced emails. Immediately following their meetings, they were locked out of their email accounts.
A third source from another agency confided that layoffs had occurred at every level, from associates to managing partners and directors. The agency's HR lead and chief strategy officer were no longer part of the company.
The affected staff believe the layoffs are tied to recent account losses, including Coca-Cola, and broader dissatisfaction with leadership. However, a fourth source acquainted with WPP Media argued that the layoffs were not primarily due to client losses. Instead, they suggested the media unit had grown too big and needed to transform into a more AI- and software-driven organization to deliver a united client service, streamline operations, eliminate duplication, and create a stronger, more connected organization.
Despite the rationalizations, the abrupt nature of the layoffs left many employees feeling frustrated and caught off guard. "I think it's crazy how, just because of title, they're not kept in the loop," remarked the second source.
Editor's note (May 9, 1:34 p.m. ET): This story has been updated to remove a part of a quote that compared the company's handling of layoffs to the Soviet Union. The original quote was included verbatim, but has since been edited for tone and context.
Enrichment Insights:
- The global restructuring effort impacting WPP's media agencies aims to improve integration, streamline operations, and centralize leadership by evolving agency brands to function as dedicated client teams within a unified structure, anchored on strategic priorities such as collaboration, data and technology, innovation, people, and organizational design.
- The rebranding of GroupM to WPP Media, which signifies the unification of agency brands and investment teams under the WPP Media banner, is a direct result of WPP's strategic decision to restructure its media operations into a single profit and loss (P&L) entity, intending to better position the organization for future growth focused on AI, data-driven marketing, and unified client service.
- The layoffs affect multiple regions, with reports suggesting that up to 45% of staff in some areas could be impacted by the restructuring.
- The layoffs at WPP Media, following the rebranding of GroupM, seem to be part of a broader industry trend, affecting various executive positions across different levels within the company.
- Although workers anticipated restructuring, the sudden layoffs reportedly came without prior warning, causing anxiety and frustration among employees.
- According to sources, the layoffs might be linked to account losses, such as Coca-Cola, and broader dissatisfaction with leadership within the business finance sector.
- Some industry insiders argue that the media unit had grown too big and needed to transform into a more AI- and software-driven organization to deliver a united client service, streamline operations, eliminate duplication, and create a stronger, more connected organization.
